Taxation and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 – ‘Netflix’ changes to GST etc. – update on passage to legislation

The Taxation and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 was passed by the House of Reps without amendment, on Thursday 3.3.2016. The Bill proposes amendments re GST treatment of digital products and other services and the GST treatment of cross-border transactions between businesses (in the process changing the definition of ‘present establishment’ in Australia).…

SMSF and collectables – I July 2016 deadline looming for storing them etc (SIS Reg 13.18AA)

A Self Managed Superannuation Fund (‘SMSF’), which has investments in collectables or personal-use assets that were acquired before 1 July 2011, has to meet the requirements of the Superannuation Industry (Supervision) Regulations 1994 (SISR) for these assets. Assets considered collectables and personal-use assets include things like artwork, jewellery, antiques, vehicles, boats and wine. Investments in such items must be made…

Higher Education Loan Program (HELP) – notice setting repayment income thresholds and repayment rates

A notice has been gazetted specifying the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2016-17 financial year. The details are: HELP repayment thresholds and rates 2016-17 For repayment income in the range Percentage rate to be applied to repayment income Below $54,870 Nil $54,870 to $61,120 4% $61,121 to $67,369…

Treaty residence of pension funds – OECD releases discussion draft on its model treaty

The OECD has released a discussion draft that includes proposals for changes to the OECD Model Tax Convention concerning the treaty residence of pension funds. Paragraph 12 of the final version of the Report on Action 6 of the BEPS Action Plan (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances) indicates that: Additional work will also…

Indexed superannuation rates and thresholds for 2016-17 – calculated by adjustment under the recently released ‘AWOTE’ index numbers

The superannuation rates and caps that are indexed, for 2016/17, can be calculated by adjusting them by the recently released AWOTE (Average Weekly Ordinary Time Earnings) index figures. They are as follows. CONTRIBUTIONS CAPS: The general concessional contributions cap is $30,000 for 2016-17 (unchanged from 2015-16). Note the higher temporary concessional cap of $35,000 (not…

Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 – receives Royal Assent – Offences created of dealing with accounting documents dishonestly

The Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 , on Monday 29.2.2016, received Royal Assent as Act No 15 of 2016. It contains a range of measures to improve and clarify Commonwealth criminal justice arrangements, including amending the Criminal Code to insert 2 new offences of false dealing with accounting documents eg re…

Re Payne v FCT – ‘superannuation guarantee charge’: direct payments to employees not superannuation contributions for SGC purposes

The AAT has found that an employer did not make superannuation contributions when he made direct payments to an employee. The employee was his former de factor partner and, after the relationship ended in 2008, she complained to the ATO about the employer’s superannuation guarantee (SG) obligations. After an initial audit, the ATO advised the…